The Islamic Development Bank (IDB) earlier this week made loans worth more than $278 million for development projects in its member countries, it announced in a statement.

Saudi Arabia received two loans totaling $40.5 million to finance the import of palm oil and the construction of a hotel in the western city of Medina, the statement said, carried by the official SPA news agency.

Morocco was granted a loan of $27.35 million to finance a drinking water project in drought-stricken regions, while Bangladesh and Pakistan received 25 million each to buy crude oil and refined oil products from other IDB member states.

Egypt was given two loans worth a total of $16.85 million, the first for equipment to build a road network, and the other to build a paper factory.

A loan of 16.5 million went to Qatar to develop an administrative complex, while Brunei received the same amount to carry out an education project.

Turkey and Iran each received 15 million. The former will use it to buy lubricants from Malaysia and the latter to finance a water project in the port of Bandar Abbas and on Kish Island.

The IDB, based in the western Saudi town of Jeddah, gives low interest loans to Muslim countries to help them with their development and to overcome their financial difficulties.

It has a capital of $9 billion, and is an organ of the Organization of the Islamic Conference. — (AFP)